Business

Inflation at 2.1% in August with higher costs in every area

Canada’s consumer price index rose by 2.1 per cent in August compared to the same month last year, led by higher prices for housing and food.

Meat is 9.3% more expensive than last year as food and shelter costs rise

Lower prices for fruits and vegetables helped moderate the increase in food prices in August, but Canadians are paying 9.3 per cent more for meat than they were last year. (Scott Applewhite/Associated Press)

Canada’s consumer price index rose by 2.1 per cent in August compared to the same month last year, led by higher prices for housing and food.

Statistics Canada reported Friday that prices rose in every category it tracks. 

Shelter costs rose by 2.8 per cent, with increases in rents and house prices.

Food prices rose 2.2 per cent, less than the 3.2 per cent recorded in July as lower-priced local, fresh vegetable and fruit helped reduce food bills. At the same time, consumers are paying 9.3 per cent more for meat than they were last year.

A 7.6 per cent increase in the cost of telecommunications services also boosted inflation.

The overall inflation rate is the same as the 2.1 per cent recorded in July.  

Core inflation, which the Bank of Canada closely monitors and which excludes some items from the volatile energy and food categories, rose by 2.1 per cent, after an increase of 1.7 per cent in July.

On a seasonally adjusted basis, inflation was up 0.1 per cent in August compared with the previous month, when it fell by 0.1 per cent.

With files from the Canadian Press